Cheniere Energy Partners, L.P. (“Cheniere Partners”) (NYSE American: CQP) announced today that liquefied natural gas (LNG) was produced for the first time at Train 6 of the company’s Sabine Pass Liquefaction facility. The commissioning process continues, and Cheniere Partners expects Substantial Completion of Train 6 to be achieved in the first quarter of 2022, approximately 1 year ahead of the guaranteed completion date. Upon Substantial Completion, Bechtel Energy Inc. (“Bechtel”) will transfer the completed train to Cheniere Partners, and Sabine Pass’ total production capacity will be approximately 30 million tonnes per annum of LNG.
“This milestone is yet another impressive achievement by the Bechtel and Cheniere teams who continue to safely commission and bring our LNG trains online ahead of schedule and within project budgets,” said Jack Fusco, Chairman, President and CEO of Cheniere Partners. “With global economic activity increasing and the winter season approaching in key LNG markets around the world, providing additional supplies of reliable LNG can help companies, countries and communities around the world during this high-demand period.”
“These LNG projects are powering the energy transition and enabling access to cleaner energy around the world,” said Brendan Bechtel, Chairman and CEO of Bechtel. “Cheniere Partners continues to be at the forefront in the LNG industry and we are honored to play a role in improving access to this energy source for communities that need it.”
Full notice to proceed on Sabine Pass Train 6 was issued to Bechtel by Cheniere Partners in June 2019. Since then, the peak workforce building Train 6 was 1,800 workers who have completed approximately 5,000,000 craft professional hours, installed 12,250 tons of steel, poured 48,500 yards of concrete, and laid 2,500,000 feet of cable.
Wednesday 24 November 2021
Woodfibre LNG awards EPFC contract to McDermott
Woodfibre LNG has signed an Engineering, Procurement, Fabrication, and Construction (EPFC) contract with McDermott International. The EPFC contract is an important step in advancing detailed engineering and construction scheduling work in advance of Woodfibre LNG issuing a notice to proceed.
Responsibly produced natural gas is a necessary part of making a successful global transition from heavy-emitting fuels to renewables. By harnessing the low-carbon gas resources of British Columbia's Montney region to replace coal-fired energy sources in Asia, Woodfibre LNG will reduce global emissions by 3.5 million tonnes CO2e per annum, equivalent to removing 5 percent of B.C.'s annual emissions from the atmosphere each year. McDermott and Woodfibre's collaboration on front-end engineering and facility design, relative to typical LNG facilities, is expected to result in a reduction of approximately 86 percent of the carbon dioxide emissions per tonne of LNG produced.
Woodfibre LNG will be the cleanest liquefied natural gas export facility on earth, achieved through the adoption of a low-emission philosophy across every element of engineering and design. The facility will use hydroelectricity for the main liquefaction process, and includes state of the art technology that enables liquefaction machinery to restart without flaring, a recycling system for "boil-off" gas, and additional transformers, switchgear and transmission lines. Altogether, this results in the most groundbreaking technical achievement in the world of LNG, and sets a new standard for efficient plant design. This next-generation LNG production is in high demand. Woodfibre LNG has two offtake agreements signed with BP, meaning over 70 percent of Woodfibre's annual throughput has already been sold.
McDermott's industry-leading NetZero Modular LNG strategy has been fully utilized during the development of this advanced onshore gas processing and liquefaction facility with floating storage near Squamish, British Columbia, Canada. The strategy provides multiple pathways through design, execution and construction to reduce operational and project emissions.
"Our contract with McDermott is a positive step forward for this substantial piece of clean energy infrastructure," said Christine Kennedy, president of Woodfibre LNG. "Together, we will be building the lowest-emission, most sustainable and innovative LNG export facility in the world. A particular point of pride for us is that the Squamish Nation serves as a full environmental regulator for this project. Serving as a unique example of economic Reconciliation, this is the first arrangement of its type for an LNG facility."
McDermott will manage onshore construction, leveraging Canadian-based contractors and commitments included in Woodfibre LNG's Impact Benefit Agreements with the Sḵwx̱wú7mesh Úxwumixw (Squamish Nation). It is estimated that 650 people will be working on the Woodfibre LNG site at peak construction. The EPFC contract commits McDermott to Woodfibre LNG's hiring priority for qualified Squamish Nation members and local workers first, followed by British Columbians and then Canadians. The joint priority is to create a safe, inclusive and respectful workplace that brings benefits to the project's Indigenous partners and community.
"This is another example of how we are applying our unique integrated capabilities to solve challenges and create successes for our customers," said Samik Mukherjee, Executive Vice President and Chief Operating Officer of McDermott. "This award is a tremendous opportunity to further demonstrate how our LNG and modularization expertise enables a new generation of sustainable energy solutions."
In addition to the EPFC work, McDermott will also be responsible for commissioning and start-up services. Pre-installation work for the project is planned for early 2022 and will gradually ramp up to September 2023, when major construction is targeted to begin. Major works will continue through to substantial completion, expected in Q3 2027.
Monday 15 November 2021
PGNiG will purchase more natural gas from Venture Global LNG
PGNiG (Polish Oil and Gas Company) signed amendments to agreements with American companies Venture Global Calcasieu Pass, LLC and Venture Global Plaquemines, LLC to purchase another 2 million tonnes per annum (MTPA) of liquefied natural gas for 20 years. As a result, the volume of LNG contracted from Venture Global LNG by PGNiG will increase up to 5,5 MTPA, which equals approximately 7.4 bcm following regasification.
“The contracts signed today are another important step on the way to full energy security of our country. The American gas which will be supplied by a reliable and predictable partner, together with the fuel that will flow to Poland via the Baltic Pipe gas pipeline from Norway, will allow us to become independent from supplies from the eastern direction. Diversifying the sources of gas imports and the possibility of choice, as well as the freedom to trade in the purchased fuel, increases Poland's energy independence,” commented Jacek Sasin, Deputy Prime Minister and Minister of State Assets.
“The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas. This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries. This is particularly important considering that natural gas will be a bridge fuel in the process of energy transition of the Polish economy. At the same time, access to American LNG gives us opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas. In this respect, we value cooperation with Venture Global LNG, as it brings us the possibility of achieving our strategic goals,” commented Paweł Majewski, the President of the PGNiG Management Board.
“Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland. Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG. Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio. Pivoting towards cleaner natural gas from the United States will not only increase Poland’s energy security but also decrease its carbon emissions, and Venture Global looks forward to supporting our partner PGNiG in these efforts for years to come,” commented Mike Sabel, Chief Executive Officer of Venture Global LNG.
The amendments relate to agreements signed by PGNiG and Venture Global LNG companies in 2018. They determine the increase in the sales volume of liquefied natural gas. In case of the sales and purchase agreement with Venture Global Calcasieu Pass, LLC the amendment provides for an increase in the volume of LNG purchased by PGNiG by 0.5 MTPA to 1.5 MTPA. While the amendment to the agreement with Venture Global Plaquemines, LLC increases the volume of supplies of LNG by 1.5 MTPA to 4.0 MTPA. Thanks to the amendments the total volume of liquefied natural gas that PGNiG will purchase from both Venture Global LNG companies for the period of 20 years will increase to a total of 5.5 MTPA, i.e. to approx. 7.4 bcm after regasification.
The amended agreements are contracts based on the free-on-board (FOB) formula, which means that the purchaser, i.e. PGNiG, is responsible for the loading and transportation of the purchased gas. LNG will be collected from two liquefaction facilities on the Gulf of Mexico – Calcasieu Pass and Plaquemines. The first supplies from Venture Global LNG are planned for the beginning of 2023.
“The contracts signed today are another important step on the way to full energy security of our country. The American gas which will be supplied by a reliable and predictable partner, together with the fuel that will flow to Poland via the Baltic Pipe gas pipeline from Norway, will allow us to become independent from supplies from the eastern direction. Diversifying the sources of gas imports and the possibility of choice, as well as the freedom to trade in the purchased fuel, increases Poland's energy independence,” commented Jacek Sasin, Deputy Prime Minister and Minister of State Assets.
“The import of LNG allows PGNiG to diversify sources and routes of supply of natural gas. This way we can provide Polish customers with energy security – constant and uninterrupted gas deliveries. This is particularly important considering that natural gas will be a bridge fuel in the process of energy transition of the Polish economy. At the same time, access to American LNG gives us opportunity to develop trade of this fuel on the global market – for this purpose we will charter LNG carriers to transport liquefied natural gas. In this respect, we value cooperation with Venture Global LNG, as it brings us the possibility of achieving our strategic goals,” commented Paweł Majewski, the President of the PGNiG Management Board.
“Venture Global is proud to expand our existing partnership with PGNiG to provide a clean and reliable supply of American LNG to Poland. Since 2018, our two companies have significantly increased our cooperation, nearly tripling the volume of LNG Venture Global will export to PGNiG. Poland will lower its carbon footprint and diversify its energy mix by incorporating more American natural gas into its portfolio. Pivoting towards cleaner natural gas from the United States will not only increase Poland’s energy security but also decrease its carbon emissions, and Venture Global looks forward to supporting our partner PGNiG in these efforts for years to come,” commented Mike Sabel, Chief Executive Officer of Venture Global LNG.
The amendments relate to agreements signed by PGNiG and Venture Global LNG companies in 2018. They determine the increase in the sales volume of liquefied natural gas. In case of the sales and purchase agreement with Venture Global Calcasieu Pass, LLC the amendment provides for an increase in the volume of LNG purchased by PGNiG by 0.5 MTPA to 1.5 MTPA. While the amendment to the agreement with Venture Global Plaquemines, LLC increases the volume of supplies of LNG by 1.5 MTPA to 4.0 MTPA. Thanks to the amendments the total volume of liquefied natural gas that PGNiG will purchase from both Venture Global LNG companies for the period of 20 years will increase to a total of 5.5 MTPA, i.e. to approx. 7.4 bcm after regasification.
The amended agreements are contracts based on the free-on-board (FOB) formula, which means that the purchaser, i.e. PGNiG, is responsible for the loading and transportation of the purchased gas. LNG will be collected from two liquefaction facilities on the Gulf of Mexico – Calcasieu Pass and Plaquemines. The first supplies from Venture Global LNG are planned for the beginning of 2023.
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